TukTuk Loan
Tuk Tuk Loan focuses on young generation who are in need of initiating their own motorbike public transport business commonly known as “Boda Boda” or “TukTuk”. Therefore this loan is designed to finance the purchase the motorbike and hand it to the borrower as per the loan terms. This loan allows individuals or businesses to acquire the necessary assets without making an upfront payment, providing them with immediate access to the equipment.
TukTuk Loan product is often used by individuals, entrepreneurs, or businesses that require motorbikes for personal or commercial purposes, such as transportation, delivery services, or professional use.As a microfinance, we finance a significant portion of the equipment's purchase price, usually ranging from 70% to 100% of the total cost. The loan amount may also consider factors such as the borrower's creditworthiness, down payment, and the equipment's expected useful life.
TukTuk Loan product is secured by the equipment itself, meaning that the equipment being financed serves as collateral for the loan. In the event of default or non-payment, the lender may have the right to repossess the equipment to recover the outstanding loan amount. Collateral requirements may vary among lenders, and borrowers should confirm the specific collateral requirements for their equipment loan.
While the lender may hold a security interest in the equipment, borrowers typically retain ownership and possession of the equipment during the loan term. This allows them to use and benefit from the equipment while making regular loan repayments. It's crucial for borrowers to adhere to the loan agreement and maintain the equipment in good condition during the loan term. On top of that, in order to fully protect the motorbike, the borrower is required to maintain a comprehensive insurance coverage during the loan duration in order to protect against damage, theft and other risks.
